Budget deficit better than estimated

Federal government figures released on Friday show revised forecast revenue has held up for the fist nine months of the 2014-2015 year.

The federal budget bottom line is running a little better than expectations.

The underlying cash balance for the first nine months of the 2014-2015 financial year stands at a deficit of $35.225 billion, compared with December's mid-year review forecast of $39.464 billion.

While revenue is almost on forecast, reduced spending accounts for the better deficit result, government figures released on Friday show.